Kemper Corporation Reports First Quarter 2015 Earnings
<ul><li class="bwlistitemmargb"><i>Improved the <org>Property & Casualty Insurance</org> segment’s underlying loss and LAE ratio 2.4 percentage points </i></li><li class="bwlistitemmargb"><i>Returned <money>$34 million</money> to shareholders through share repurchases and dividends</i></li><li class="bwlistitemmargb"><i>Reported book value per share of </i><money>$40.71</money><i>, up </i>2<i> percent from year-end 2014</i></li><li class="bwlistitemmargb"><i>Refinanced <money>$250 million</money> of 6.00 percent debt maturing <chron>November 2015</chron> with 4.35 percent debt maturing in <chron>February 2025</chron></i></li><li class="bwlistitemmargb"><i>Completed the acquisition of <org>Alliance United Group</org> on <chron>April 30</chron></i></li></ul><p><location value="LU/us.il.chicgo" idsrc="xmltag.org">CHICAGO</location>--(BUSINESS WIRE)-- <a href="http://www.kemper.com" rel="nofollow"><org value="NYSE:KMPR" idsrc="xmltag.org">Kemper Corporation</org></a> (NYSE: KMPR) reported today net income of <money>$13.5 million</money>, or <money>$0.26</money> per diluted share, for the first quarter of 2015, compared to <money>$35.1 million</money>, or <money>$0.63</money> per share, for the first quarter of 2014. Consolidated net operating income<sup>1</sup> was <money>$21.8 million</money>, or <money>$0.42</money> per diluted share, for the first quarter of 2015, compared to <money>$31.5 million</money>, or <money>$0.56</money> per share, for the first quarter of 2014. Net operating income decreased primarily from lower favorable reserve development, a reserve adjustment on certain life policies, higher employee retirement benefits and higher interest expenses. These items were partially offset by improved P&C underlying results and lower catastrophes. </p><table cellspacing="0" class="bwtablemarginb"><tr><td></td><td> </td><td colspan="7"></td></tr><tr><td></td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="7"> Three Months Ended </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Dollars in Millions, Except Per Share Amounts) (Unaudited) </td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2014 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Consolidated Net Operating Income <sup>1</sup></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 21.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 31.5 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Income from Continuing Operations </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 13.5 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 35.2 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Net Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 13.5 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 35.1 </td><td></td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"><i>Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income</i></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"><i>$</i></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"><i>(6.7</i></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"><i>)</i></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"><i>$</i></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"><i>(10.6</i></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"><i>)</i></td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Diluted Net Income Per Share From: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl3 bwvertalignb bwalignl"> Consolidated Net Operating Income <sup>1</sup></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 0.42 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 0.56 </td><td></td></tr><tr><td class="bwpadl3 bwvertalignb bwalignl"> Continuing Operations </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 0.26 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 0.63 </td><td></td></tr><tr><td class="bwpadl3 bwvertalignb bwalignl"> Net Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 0.26 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 0.63 </td><td></td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"><i>Impact of Catastrophe Losses and Related LAE on Net Income Per Share</i></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"><i>$</i></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"><i>(0.13</i></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"><i>)</i></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"><i>$</i></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"><i>(0.19</i></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"><i>)</i></td></tr></table><p><sup>1</sup> Consolidated net operating income is an after-tax, non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” for additional information. </p><p> “Our team made tangible progress in the first quarter of 2015,” commented <person>Donald G. Southwell</person>, Kemper’s Chairman, President and Chief Executive Officer. “In the Property & Casualty segment, our underlying loss and LAE ratio improved 2.4 percentage points. While we continued to see top line pressure, new business increased and is at the highest level in the last six quarters. Additionally, the premium renewal ratio is stabilizing. </p><p> “The Life & Health Group’s results decreased primarily as a result of a <money>$7.6 million</money> pre-tax adjustment to deferred premium reserves. Excluding this adjustment, net income exceeded our plans and approached last year’s level. </p><p> “Last week, we completed the purchase of <org>Alliance United Group</org>, a top writer of nonstandard auto in <location value="LS/us.ca" idsrc="xmltag.org">California</location>. We expect Alliance United will generate more than <money>$200 million</money> of earned premiums for Kemper in 2015 and be accretive to our 2015 earnings. </p><p> “In the first quarter, we refinanced our <money>$250 million</money> 6 percent notes maturing in November with new <money>$250 million</money> 10-year notes at a coupon of 4.35 percent. Additionally, we returned <money>$34 million</money> to shareholders through <money>$22 million</money> of common stock repurchases and <money>$12 million</money> of dividends,” said Southwell. </p><p><b>Capital</b></p><p> During the first quarter of 2015, Kemper repurchased more than 600,000 shares of its common stock at a total cost of <money>$21.9 million</money>, or <money>$35.68</money> per share, and paid dividends of <money>$12.3 million</money>. </p><p> Kemper ended the quarter with a book value per share excluding net unrealized gains on fixed maturities of <money>$34.64</money>, essentially flat with year-end 2014, as net income was offset by dividends. Book value per share was <money>$40.71</money>, up 2 percent from <money>$39.88</money> at the end of 2014, largely from the impact of lower yields on the fixed maturities portfolio. </p><p><b>Revenues</b></p><p> Total revenues of <money>$499.2 million</money> for the first quarter of 2015, decreased <money>$55.4 million</money> over the prior year primarily from a <money>$46.3 million</money> decrease in earned premiums. Realized gains decreased <money>$3.2 million</money> and other-than-temporary impairment losses increased <money>$6.2 million</money>. </p><p> Earned premiums in the Property & Casualty segment decreased <money>$34.7 million</money> driven by the impact of profit improvement actions taken over the past couple of years. As the impact of profit improvement actions moderate throughout 2015, the company anticipates it will see continued improvements in the level of new business and renewal ratios. </p><p> Earned premiums in the <org>Life & Health Insurance</org> segment decreased <money>$11.6 million</money> driven by a <money>$7.6 million</money> adjustment to deferred premium reserves for certain limited-pay life policies. </p><p> Net investment income was <money>$70.6 million</money> in the first quarter of 2015, compared to <money>$71.1 million</money> in 2014, as lower income from the alternative investments portfolio was mostly offset by higher interest and dividends on fixed maturities. </p><p> The investment portfolio in total generated a pre-tax equivalent annualized book yield of 5.0 percent for the first quarter of 2015, flat with 2014. </p><p><b>Segment Results</b></p><p> Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development and (iv) underlying loss ratio includes loss and LAE. </p><table cellspacing="0" class="bwtablemarginb"><tr><td></td><td> </td><td colspan="7"></td></tr><tr><td></td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="7"> Three Months Ended </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Dollars in Millions) (Unaudited) </td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2014 </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Segment Net Operating Income: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl3 bwvertalignt bwalignl"><org>Property & Casualty Insurance</org></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 13.4 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 14.4 </td><td></td></tr><tr><td class="bwpadl3 bwpadb1 bwvertalignt bwalignl"><org>Life & Health Insurance</org></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 16.1 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 22.1 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Total Segment Net Operating Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 29.5 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 36.5 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Corporate and Other Net Operating Loss </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (7.7 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (5.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Consolidated Net Operating Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 21.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 31.5 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Net Income (Loss) From: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl3 bwvertalignt bwalignl"> Net Realized Gains on Sales of Investments </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 2.2 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 4.2 </td><td></td></tr><tr><td class="bwpadl3 bwvertalignt bwalignl"> Net Impairment Losses Recognized in Earnings </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (4.6 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (0.5 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td></tr><tr><td class="bwpadl3 bwpadb1 bwvertalignt bwalignl"> Loss from Early Extinguishment of Debt </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (5.9 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> — </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"> Income from Continuing Operations </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 13.5 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 35.2 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td></tr></table><p><org>The Property & Casualty Insurance</org> segment reported net operating income of <money>$13.4 million</money> in the first quarter of 2015, compared to <money>$14.4 million</money> in 2014. Results in the first quarter of 2015 included favorable prior year reserve development of <money>$4.7 million</money> and catastrophe losses of <money>$6.7 million</money>, compared to <money>$10.0 million</money> and <money>$10.4 million</money>, respectively, in 2014. Additionally, net investment income decreased <money>$2.0 million</money>. The underlying combined ratio improved 1.3 percentage points to 97.9 percent, driven by a 2.4 percentage point improvement in the underlying loss and LAE ratio, partially offset by a 1.1 percentage point increase in the expense ratio. The first quarter underlying loss and LAE ratio of 69.0 percent, improved primarily from increases in average earned premium. Property and casualty operating expenses decreased <money>$6.6 million</money> pre-tax in the quarter, driven by a reduction in variable costs and various cost-cutting measures. However, the expense ratio increased to 28.9 percent in the first quarter of 2015, compared to 27.8 percent in 2014 as earned premiums declined. </p><p><org>The Life & Health Insurance</org> segment reported net operating income of <money>$16.1 million</money> for the first quarter of 2015, compared to <money>$22.1 million</money> in 2014. Results decreased largely from a <money>$7.6 million</money> pre-tax adjustment to deferred premium reserves for certain limited-pay life policies. </p><p> Corporate and Other net operating loss increased <money>$2.7 million</money> compared to the first quarter of 2014, driven by <money>$2.3 million</money> of higher employee retirement benefits and <money>$1.9 million</money> higher interest expense, partially offset by <money>$1.2 million</money> of higher unallocated net investment income. </p><p><b>Unaudited condensed consolidated statements of income for the three months ended <chron>March 31, 2015</chron> and 2014 are presented below:</b></p><table cellspacing="0" class="bwtablemarginb"><tr><td></td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="7"> Three Months Ended </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Dollars in Millions, Except Per Share Amounts) </td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2014 </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b>Revenues:</b></td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwvertalignb bwalignl"> Earned Premiums </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 431.3 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 477.6 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignb bwalignl"> Net Investment Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 70.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 71.1 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignb bwalignl"> Other Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 0.9 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 0.1 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignb bwalignl"> Net Realized Gains on Sales of Investments </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 3.4 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 6.6 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignb bwalignl"> Other-than-temporary Impairment Losses: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl3 bwvertalignb bwalignl"> Total Other-than-temporary Impairment Losses </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (7.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (0.8 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td></tr><tr><td class="bwpadl3 bwpadb1 bwvertalignb bwalignl"> Portion of Losses Recognized in Other Comprehensive Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> — </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> — </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl1 bwpadb1 bwvertalignb bwalignl"> Net Impairment Losses Recognized in Earnings </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (7.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (0.8 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"><b>Total Revenues</b></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 499.2 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 554.6 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b>Expenses:</b></td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwvertalignb bwalignl"> Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 297.7 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 327.9 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignb bwalignl"> Insurance Expenses </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 144.9 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 152.1 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignb bwalignl"> Loss from Early Extinguishment of Debt </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 9.1 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> — </td><td></td></tr><tr><td class="bwpadl1 bwpadb1 bwvertalignb bwalignl"> Interest and Other Expenses </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 29.7 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 22.7 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"><b>Total Expenses</b></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 481.4 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 502.7 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Income from Continuing Operations before Income Taxes </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 17.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 51.9 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Income Tax Expense </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (4.3 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (16.7 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"><b>Income from Continuing Operations</b></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 13.5 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 35.2 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Income from Discontinued Operations </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> — </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (0.1 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"><b>Net Income</b></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 13.5 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 35.1 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b>Income from Continuing Operations Per Unrestricted Share:</b></td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwpadb3 bwvertalignb bwalignl"> Basic </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.26 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.63 </td><td class="bwdoublebottom"> </td></tr><tr><td class="bwpadl1 bwpadb3 bwvertalignb bwalignl"> Diluted </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.26 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.63 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b>Net Income Per Unrestricted Share:</b></td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwpadb3 bwvertalignb bwalignl"> Basic </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.26 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.63 </td><td class="bwdoublebottom"> </td></tr><tr><td class="bwpadl1 bwpadb3 bwvertalignb bwalignl"> Diluted </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.26 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.63 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b>Weighted-average Outstanding (Shares in Thousands):</b></td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwpadb3 bwvertalignt bwalignl"> Unrestricted Shares - Basic </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 51,872.8 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 55,312.9 </td><td class="bwdoublebottom"> </td></tr><tr><td class="bwpadl1 bwpadb3 bwvertalignt bwalignl"> Unrestricted Shares and Equivalent Shares - Diluted </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 51,969.3 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 55,443.1 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"><b>Dividends Paid to Shareholders Per Share</b></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.24 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.24 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td></tr></table><p><b>Unaudited business segment revenues for the three months ended <chron>March 31, 2015</chron> and 2014 are presented below:</b></p><table cellspacing="0" class="bwtablemarginb"><tr><td></td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="7"> Three Months Ended </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Dollars in Millions) </td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2014 </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b>REVENUES</b></td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b><org>Property & Casualty Insurance</org>:</b></td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Earned Premiums: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl4 bwvertalignt bwalignl"> Personal Automobile </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 189.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 216.3 </td><td></td></tr><tr><td class="bwpadl4 bwvertalignt bwalignl"> Homeowners </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 72.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 79.7 </td><td></td></tr><tr><td class="bwpadl4 bwpadb1 bwvertalignt bwalignl"> Other Personal </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 11.7 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 13.2 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl2 bwvertalignt bwalignl"> Total Personal </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 274.1 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 309.2 </td><td></td></tr><tr><td class="bwpadl2 bwpadb1 bwvertalignt bwalignl"> Commercial Automobile </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 13.5 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 13.1 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Total Earned Premiums </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 287.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 322.3 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Net Investment Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 14.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 17.6 </td><td></td></tr><tr><td class="bwpadl1 bwpadb1 bwvertalignt bwalignl"> Other Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 0.3 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 0.1 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"><org>Total Property & Casualty Insurance</org></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 302.7 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 340.0 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b><org>Life & Health Insurance</org>:</b></td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Earned Premiums: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl4 bwvertalignt bwalignl"> Life </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 88.0 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 97.6 </td><td></td></tr><tr><td class="bwpadl4 bwvertalignt bwalignl"> Accident and Health </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 36.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 38.8 </td><td></td></tr><tr><td class="bwpadl4 bwpadb1 bwvertalignt bwalignl"> Property </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 18.9 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 18.9 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Total Earned Premiums </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 143.7 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 155.3 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Net Investment Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 50.4 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 50.2 </td><td></td></tr><tr><td class="bwpadl1 bwpadb1 bwvertalignt bwalignl"> Other Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 0.8 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> — </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"><org>Total Life & Health Insurance</org></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 194.9 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 205.5 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"><b>Total Segment Revenues</b></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 497.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 545.5 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Net Realized Gains on Sales of Investments </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 3.4 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 6.6 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Net Impairment Losses Recognized in Earnings </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (7.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (0.8 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Other </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 5.2 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 3.3 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"><b>Total Revenues</b></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 499.2 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 554.6 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td></tr></table><table cellspacing="0" class="bwtablemarginb"><tr><td class="bwpadl0 bwvertalignt bwalignc" colspan="8"><b>KEMPER CORPORATION AND SUBSIDIARIES</b><p class="bwcellpmargin"><b>CONDENSED CONSOLIDATED BALANCE SHEETS</b></p><p class="bwcellpmargin"><b>(Dollars in Millions)</b></p></td></tr><tr><td></td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="2"><chron>Dec 31</chron>,<br />2014 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"><b>Assets:</b></td><td></td><td class="bwpadl0 bwvertalignb bwalignl" colspan="3"> (Unaudited) </td><td></td><td colspan="2"></td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Investments: </td><td></td><td colspan="3"></td><td></td><td colspan="2"></td></tr><tr><td class="bwpadl4 bwvertalignb bwalignl"> Fixed Maturities at Fair Value </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 4,803.1 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 4,777.6 </td></tr><tr><td class="bwpadl4 bwvertalignb bwalignl"><org>Equity Securities</org> at Fair Value </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 628.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 632.2 </td></tr><tr><td class="bwpadl4 bwvertalignb bwalignl"> Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 168.1 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 184.8 </td></tr><tr><td class="bwpadl4 bwvertalignb bwalignl"> Fair Value Option Investments </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 54.2 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 53.3 </td></tr><tr><td class="bwpadl4 bwvertalignb bwalignl"> Short-term Investments at Cost which Approximates Fair Value </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 357.3 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 342.2 </td></tr><tr><td class="bwpadl4 bwpadb1 bwvertalignb bwalignl"> Other Investments </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 450.1 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 449.6 </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Total Investments </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 6,461.4 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 6,439.7 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Cash </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 87.7 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 76.1 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Receivables from Policyholders </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 293.1 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 295.3 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Other Receivables </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 197.0 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 187.0 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Deferred Policy Acquisition Costs </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 305.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 303.3 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Goodwill </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 311.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 311.8 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Current Income Tax Assets </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 10.9 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> — </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Other Assets </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 217.5 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 220.2 </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignb bwalignl"> Total Assets </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 7,885.0 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 7,833.4 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"><b>Liabilities and Shareholders’ Equity:</b></td><td></td><td colspan="3"></td><td></td><td colspan="2"></td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Insurance Reserves: </td><td></td><td colspan="3"></td><td></td><td colspan="2"></td></tr><tr><td class="bwpadl4 bwvertalignb bwalignl"> Life and Health </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 3,299.5 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 3,273.7 </td></tr><tr><td class="bwpadl4 bwpadb1 bwvertalignb bwalignl"> Property and Casualty </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 720.1 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 733.9 </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Total Insurance Reserves </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 4,019.6 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 4,007.6 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Unearned Premiums </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 530.0 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 536.9 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Liabilities for Income Taxes </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 58.2 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 36.5 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Debt at Amortized Cost </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 750.0 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 752.1 </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Accrued Expenses and Other Liabilities </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 417.3 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 409.6 </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Total Liabilities </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 5,775.1 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 5,742.7 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"><b>Shareholders’ Equity:</b></td><td></td><td colspan="3"></td><td></td><td colspan="2"></td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Common Stock </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 5.2 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 5.2 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"><org>Paid-in Capital</org></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 655.1 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 660.1 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Retained Earnings </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 1,189.3 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 1,202.7 </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Accumulated Other Comprehensive Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 260.3 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 222.7 </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Total Shareholders’ Equity </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 2,109.9 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 2,090.7 </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignb bwalignl"> Total Liabilities and Shareholders’ Equity </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 7,885.0 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 7,833.4 </td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td></tr></table><p><b>Unaudited selected financial information for the <org>Property & Casualty Insurance</org> segment follows:</b></p><table cellspacing="0" class="bwtablemarginb"><tr><td></td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="7"> Three Months Ended </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Dollars in Millions) </td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2014 </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignc" colspan="9"><p class="bwcellpmargin"><span class="bwuline"><b>Results of Operations</b></span></p></td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"> Net Premiums Written </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 279.7 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 304.3 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Earned Premiums </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 287.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 322.3 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Net Investment Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 14.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 17.6 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Other Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 0.3 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 0.1 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Total Revenues </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 302.7 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 340.0 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Incurred Losses and LAE related to: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Current Year: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl2 bwvertalignt bwalignl"> Non-catastrophe Losses and LAE </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 198.5 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 230.4 </td><td></td></tr><tr><td class="bwpadl2 bwvertalignt bwalignl"> Catastrophe Losses and LAE </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 10.3 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 16.0 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Prior Years: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl2 bwvertalignt bwalignl"> Non-catastrophe Losses and LAE </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (5.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (12.7 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td></tr><tr><td class="bwpadl2 bwpadb1 bwvertalignt bwalignl"> Catastrophe Losses and LAE </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (2.2 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (2.7 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Total Incurred Losses and LAE </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 201.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 231.0 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Insurance Expenses </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 83.1 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 89.7 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Operating Profit </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 18.0 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 19.3 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Income Tax Expense </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (4.6 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (4.9 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"> Segment Net Operating Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 13.4 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 14.4 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignc" colspan="9"><p class="bwcellpmargin"><span class="bwuline"><b>Ratios Based On Earned Premiums</b></span></p></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Current Year Non-catastrophe Losses and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 69.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> % </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 71.4 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> % </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Current Year Catastrophe Losses and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 3.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 5.0 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Prior Years Non-catastrophe Losses and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (1.7 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (3.9 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Prior Years Catastrophe Losses and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (0.8 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (0.8 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Total Incurred Loss and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 70.1 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 71.7 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Insurance Expense Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 28.9 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 27.8 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"> Combined Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 99.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> % </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 99.5 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> % </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignc" colspan="9"><p class="bwcellpmargin"><span class="bwuline"><b>Underlying Combined Ratio</b></span></p></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Current Year Non-catastrophe Losses and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 69.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> % </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 71.4 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> % </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Insurance Expense Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 28.9 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 27.8 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"> Underlying Combined Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 97.9 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> % </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 99.2 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> % </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignc" colspan="9"><p class="bwcellpmargin"><span class="bwuline"><b>Non-GAAP Measure Reconciliation</b></span></p></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Underlying Combined Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 97.9 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> % </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 99.2 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> % </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Current Year Catastrophe Losses and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 3.6 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 5.0 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Prior Years Non-catastrophe Losses and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (1.7 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (3.9 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Prior Years Catastrophe Losses and LAE Ratio </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (0.8 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (0.8 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"> Combined Ratio as Reported </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 99.0 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> % </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom" colspan="2"> 99.5 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> % </td></tr><tr><td></td><td></td><td colspan="2"></td><td></td><td></td><td colspan="2"></td><td> </td></tr></table><p><b>Unaudited selected financial information for the <org>Life & Health Insurance</org> segment follows:</b></p><table cellspacing="0" class="bwtablemarginb"><tr><td></td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="7"> Three Months Ended </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Dollars in Millions) </td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2014 </td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignc" colspan="9"><p class="bwcellpmargin"><span class="bwuline"><b>Results of Operations</b></span></p></td></tr><tr><td></td><td></td><td colspan="3"></td><td></td><td colspan="3"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Earned Premiums: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Life </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 88.0 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 97.6 </td><td></td></tr><tr><td class="bwpadl1 bwvertalignt bwalignl"> Accident and Health </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 36.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 38.8 </td><td></td></tr><tr><td class="bwpadl1 bwpadb1 bwvertalignt bwalignl"> Property </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 18.9 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 18.9 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Total Earned Premiums </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 143.7 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 155.3 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Net Investment Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 50.4 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 50.2 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Other Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 0.8 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> — </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Total Revenues </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 194.9 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 205.5 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Policyholders’ Benefits and Incurred Losses and LAE </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 96.1 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 97.0 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Insurance Expenses </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 74.0 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 73.9 </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwvertalignt bwalignl"> Operating Profit </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 24.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 34.6 </td><td></td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignt bwalignl"> Income Tax Expense </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (8.7 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (12.5 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignt bwalignl"> Segment Net Operating Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 16.1 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 22.1 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td></tr></table><p><b>Use of Non-GAAP Financial Measures</b></p><p><span class="bwuline"><i>Consolidated Net Operating Income</i></span></p><p> Consolidated Net Operating Income is an after-tax, non-GAAP financial measure computed by excluding from income from continuing operations the after-tax impact of 1) net realized gains on sales of investments, 2) net impairment losses recognized in earnings related to investments, 3) loss from early extinguishment of debt and 4) significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is income from continuing operations. </p><p> Kemper believes that Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Net realized gains on sales of investments and net impairment losses recognized in earnings related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from Early Extinguishment of Debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of Kemper’s business or economic trends. </p><p> A reconciliation of Consolidated Net Operating Income to Income from Continuing Operations for the three months ended <chron>March 31, 2015</chron> and 2014 is presented below: </p><table cellspacing="0" class="bwtablemarginb"><tr><td></td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="7"> Three Months Ended </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Dollars in Millions) (Unaudited) </td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2014 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Consolidated Net Operating Income </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 21.8 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 31.5 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Net Income (Loss) From: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl3 bwvertalignb bwalignl"> Net Realized Gains on Sales of Investments </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 2.2 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 4.2 </td><td></td></tr><tr><td class="bwpadl3 bwvertalignb bwalignl"> Net Impairment Losses Recognized in Earnings </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (4.6 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (0.5 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td></tr><tr><td class="bwpadl3 bwpadb1 bwvertalignb bwalignl"> Loss from Early Extinguishment of Debt </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (5.9 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> — </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignb bwalignl"> Income from Continuing Operations </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 13.5 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 35.2 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td></tr></table><p><span class="bwuline"><i>Diluted Consolidated Net Operating Income Per Unrestricted Share</i></span></p><p> Diluted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure computed by dividing Consolidated Net Operating Income attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income from Continuing Operations Per Unrestricted Share. </p><p> A reconciliation of Diluted Consolidated Net Operating Income Per Unrestricted Share to Diluted Income from Continuing Operations Per Unrestricted Share for the three months ended <chron>March 31, 2015</chron> and 2014 is presented below: </p><table cellspacing="0" class="bwtablemarginb"><tr><td></td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="7"> Three Months Ended </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Unaudited) </td><td></td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2014 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Diluted Consolidated Net Operating Income Per Unrestricted Share </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 0.42 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 0.56 </td><td></td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Net Income (Loss) Per Unrestricted Share From: </td><td></td><td colspan="3"></td><td></td><td colspan="3"></td></tr><tr><td class="bwpadl3 bwvertalignb bwalignl"> Net Realized Gains on Sales of Investments </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 0.04 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> 0.08 </td><td></td></tr><tr><td class="bwpadl3 bwvertalignb bwalignl"> Net Impairment Losses Recognized in Earnings </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (0.09 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr" colspan="2"> (0.01 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl"> ) </td></tr><tr><td class="bwpadl3 bwpadb1 bwvertalignb bwalignl"> Loss from Early Extinguishment of Debt </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> (0.11 </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignl bwsinglebottom"> ) </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> — </td><td class="bwsinglebottom"> </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignb bwalignl"> Diluted Income from Continuing Operations Per Unrestricted Share </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.26 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 0.63 </td><td class="bwdoublebottom"> </td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td></tr></table><p><span class="bwuline"><i>Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities</i></span></p><p> Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book Value Per Share is the most directly comparable GAAP financial measure. Kemper uses the trend in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. </p><p> A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Book Value Per Share at <chron>March 31, 2015</chron> and <chron>December 31, 2014</chron> is presented below: </p><table cellspacing="0" class="bwtablemarginb"><tr><td class="bwpadl0 bwvertalignb bwalignl bwsinglebottom"> (Dollars in Millions) (Unaudited) </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="3"><chron>Mar 31</chron>,<br />2015 </td><td> </td><td class="bwpadl0 bwvertalignb bwalignc bwsinglebottom" colspan="2"><chron>Dec 31</chron>,<br />2014 </td></tr><tr><td class="bwpadl0 bwvertalignb bwalignl"> Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 1,795.3 </td><td></td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr"> 1,808.5 </td></tr><tr><td class="bwpadl0 bwpadb1 bwvertalignb bwalignl"> Net Unrealized Gains on Fixed Maturities </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 314.6 </td><td class="bwsinglebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwsinglebottom" colspan="2"> 282.2 </td></tr><tr><td class="bwpadl0 bwpadb3 bwvertalignb bwalignl"> Shareholders’ Equity </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 2,109.9 </td><td class="bwdoublebottom"> </td><td></td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> $ </td><td class="bwpadl0 bwnowrap bwpadr0 bwvertalignb bwalignr bwdoublebottom"> 2,090.7 </td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td> </td></tr></table><p><span class="bwuline"><i>Underlying Combined Ratio</i></span></p><p> Underlying Combined Ratio is a non-GAAP financial measure, that is computed by adding the current year non-catastrophe losses and LAE ratio with the insurance expense ratio. The most directly comparable GAAP financial measure is the combined ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses, and loss and LAE reserve development from prior years with the insurance expense ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on incurred losses and LAE and the combined ratio. Prior-year reserve development is caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the company’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing its underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. </p><p><b>Conference Call</b></p><p> Kemper will discuss its first quarter 2015 results in a conference call on <chron>Friday, May 8</chron>, at <chron>11 a.m. Eastern Time</chron>. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is <b>866.393.1565</b>. To listen via webcast, register online at the investor section of <a href="http://kemper.com">kemper.com</a> at least 15 minutes prior to the webcast to download and install any necessary software. </p><p> A replay of the call will be available through <chron>May 22, 2015</chron> at <b>855.859.2056</b> using conference ID number <b>19511835</b>. </p><p> More detailed financial information can be found in Kemper’s Investor Financial Supplement for the first quarter of 2015, which is available at the <a href="http://investors.kemper.com/corporateprofile.aspx?iid=103308" rel="nofollow">investor section of kemper.com</a>. </p><p><b>About Kemper</b></p><p> The Kemper family of companies is one of the nation’s leading insurers. With <money>$8 billion</money> in assets, Kemper is improving the world of insurance by offering personalized solutions for individuals, families and businesses. Kemper's businesses collectively: </p><ul><li class="bwlistitemmargb"> Offer insurance for home, auto, life, health and valuables </li><li class="bwlistitemmargb"> Service six million policies </li><li class="bwlistitemmargb"> Are represented by more than 20,000 independent agents and brokers </li><li class="bwlistitemmargb"> Employ 6,000 associates dedicated to providing exceptional service </li><li class="bwlistitemmargb"> Are licensed to sell insurance in 50 states and the <location value="LS/us.dc" idsrc="xmltag.org">District of Columbia</location></li></ul><p> Learn more about <a href="http://www.kemper.com" rel="nofollow">Kemper</a>. </p><p><b>Caution Regarding Forward-Looking Statements</b></p><p> This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events, and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts. </p><p> Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those listed in periodic reports filed by Kemper with the <org>Securities and Exchange Commission</org> (the “SEC”). No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the <org>SEC</org>. </p><p></p><p></p><p><img alt="" src="http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150507006589r1&sid=acqr7&distro=nx&lang=en" /><span class="bwct31415" /></p><p><org value="NYSE:KMPR" idsrc="xmltag.org">Kemper Corporation</org><br></br>Investors:<br></br><person>Diana Hickert-Hill</person>, 312.661.4930<br></br><a href="mailto:[email protected]">[email protected]</a></p><p></p><p>Source: <org value="NYSE:KMPR" idsrc="xmltag.org">Kemper Corporation</org></p>
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News